Samsung is expected to become a supplier for Nvidia’s HBM (High Bandwidth Memory) technology, leading to a strong surge in its stock price of over 5%.

By admin Mar 20, 2024

Following reports of Nvidia (NVDA-US) testing Samsung’s (005930-KR) High Bandwidth Memory (HBM) for future adoption, Samsung’s stock surged over 5% in early trading on Wednesday (20th), reaching a high point in over two months.

According to a report by Nikkei, Nvidia co-founder Jensen Huang mentioned that they are conducting quality certification on Samsung’s HBM chips for potential future use.

After the news emerged, Samsung’s stock rose by 5.2% before the market close, reaching 76,600 Korean won per share, marking the highest level since January 9th and driving the KOSPI index up by over 1%.

In contrast, Samsung’s competitor SK Hynix (000660-KR) saw a 2.5% decline in its stock price. SK Hynix is currently the only company producing HBM3E chips and is Nvidia’s exclusive supplier of HBM chips.

SK Hynix recently announced the commencement of mass production of the next-generation HBM chips. Reuters reported that the initial batch of HBM3E chips will be supplied to Nvidia for use in their latest AI superchip, “GB200 Grace Blackwell”.

HBM chips are essential for meeting the memory-intensive and high-speed processing requirements of large-scale language AI models, making them indispensable for AI research and development. Samsung has recently announced plans to begin mass production of HBM3E in the first half of 2024, aiming to keep pace with competitor SK Hynix.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *